NeoGenomics Inc (NEO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,681,230 | 1,740,030 | 1,869,780 | 988,331 | 709,506 |
| Total stockholders’ equity | US$ in thousands | 941,537 | 998,023 | 1,108,280 | 694,294 | 507,408 |
| Financial leverage ratio | 1.79 | 1.74 | 1.69 | 1.42 | 1.40 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,681,230K ÷ $941,537K
= 1.79
The financial leverage ratio of Neogenomics Inc. has shown a consistent upward trend over the past five years, indicating an increasing level of financial leverage. The ratio increased from 1.40 in 2019 to 1.79 in 2023, reflecting a gradual buildup of debt relative to equity in the company's capital structure. This suggests that Neogenomics has been relying more on debt financing to support its operations and growth initiatives.
A higher financial leverage ratio implies a higher degree of financial risk as the company has more debt obligations to meet, which could potentially lead to higher interest payments and reduced financial flexibility. It is important for investors and stakeholders to closely monitor the company's ability to service its debt obligations and manage its leverage effectively to avoid potential financial distress.